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在线翻译:
szdaily -> Markets -> 
Regulations issued for Shanghai-London link
    2018-10-15  08:53    Shenzhen Daily

CHINA’S securities regulator Friday published rules for a cross-listing program between exchanges in Shanghai and London, clearing the way for companies to press ahead with plans to debut on each other’s bourses.

Unlike the stock connect program linking Shanghai and Hong Kong, which allows investors to buy overseas stocks directly, the Shanghai-London connect only allows investors to buy foreign stocks indirectly, in the form of depository receipts (DRs).

Chinese companies can raise fresh funds by issuing Global Depository Receipts in London. However, London-listed firms can initially only issue China Depository Receipts backed by existing shares, ruling out fundraising via Shanghai listings.

Companies will have to meet certain thresholds and will be limited in how many shares they can issue, the China Securities Regulatory Commission said in a statement late Friday, without giving details. Investors can swap their London-listed depositary receipts for company stock 120 days after a new listing, down from six months in previous draft rules.

“We welcome the shorter conversion period,” said Gary O’Brien, head of clearing and custody product at BNP Paribas SA in Hong Kong. “This shows the authorities are truly listening to the needs of investors when designing the scheme” and that they want to increase participation from international investors, he said.

The link, which has been in the works since 2015, is the latest effort by Chinese authorities to connect their capital markets with the rest of the world.

So far, only Huatai Securities Co., China’s third-largest brokerage by market value, has said it plans to list in London using the link.

The stock connect may be operational as early as Dec. 3, Shanghai Securities News reported in September, without saying where it got the information. U.K.-listed firms with a market value of at least 20 billion yuan (US$2.9 billion) would be able to issue depositary receipts, the newspaper said.

The newspaper said investors with a minimum 3 million yuan in securities and fund accounts can buy the shares. This is the first time specific requirements have been reported.

Firms seeking to issue depositary receipts in China must be listed for at least three years and the issuance must be at least 500 million yuan, Shanghai Securities News said. (SD-Agencies)

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